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Wie es ausschaut, ist die lang erwartete Rettung (Finanzierung) eingetroffen. Dank an das Ami-Covad-Board. V-Mac, die Wette ist nicht vergessen. Werde Dir demnächst per Boardmail meine Email-Adresse schicken. Grüße, Bannerman PALO ALTO, Calif., (Reuters) - Covad Communications Group Inc , the Internet service provider that filed for Chapter 11 bankruptcy protection in August, will announce later on Tuesday that it has secured $150 million in loans and other financing from SBC Communications Inc , the local phone company that sells its service. Covad`s Chief Executive Charles Hoffman said in an interview that the new cash, combined with the forgiveness of debt and some draconian cuts in expenses, should carry the company through to a point when it will be cash flow positive, sometime in the second half of 2003. Under the deal Covad will announce, SBC will provide a one-time payment of $75 million, a $50 million four-year loan, a $10 million fee in exchange for eliminating revenue commitments under a prior resale and marketing agreement, plus the elimination of a $15 million debt. Covad, which has also negotiated the elimination of some $1.4 billion of debt through a bankruptcy deal that will pay bond holders 19 cents on the dollar, said it expects to exit bankruptcy later this year with a total of $305 million in cash, including the new money from SBC. The company burned through some $233 million during the first quarter of this year alone, but cut that burn rate to an estimated $67 million in its third quarter. Hoffman said it will have a quarterly burn rate below $20 million a year from now. Covad, which provides high-speed Internet access over digital subscriber, or DSL, phone lines, has rapidly grown its subscriber base in recent years. But it ran into financial trouble with a business model built on aggressive spending to expand into new markets. During the quarter ended June 30, the company recorded a net loss of $175.5 million and said it had 333,000 customers. As part of its bankruptcy reorganization, the company has dissolved some subsidiary operations and reduced its staff. Despite all the financial difficulties, Hoffman said that demand for the service remained strong and he was confident the new money raised would keep it in business. "There is always the risk of the economy, and of our competitors, but that is pretty much normal business risk," he said. "There is still demand for this service. Anybody who needs to work from home or has teenagers who need to do homework over the Internet just find dial-up access too slow." 08:00 11-13-01 |
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| aus der Diskussion: | Covad - Himmel oder Hölle |
| Autor (Datum des Eintrages): | Bannerman (13.11.01 15:28:39) |
| Beitrag: | 42 von 149 (ID:4869866) |
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